Weekly Product Updates

W42: Salmon Update

Salmon
Chile
Market & Price Trends
China
Published Oct 27, 2023
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In W42 in the salmon landscape, in the first seven months of 2023, the Chilean salmon farming industry experienced a 6% increase in export volume and a 6% growth in export revenue year-over-year (YoY). Among the top Chilean salmon exporters for this period, Empresas AquaChile led in revenue with 121.62 thousand WFE tons exported and returns of USD 721 million, despite a 7% decrease in income. Multi took second place, followed by Cermaq Chile in third place with exports of 51.36 thousand tons, and Salmones Austral in fourth place with 40.12 thousand tons. Mowi Chile secured fifth place with 29.48 thousand tons exported, achieving a 13% increase in revenue.

Moreover, Chile's Ministry of Environment enforces new regulations canceling salmon farming concessions in protected areas lacking management plans. This aims to ensure production aligns with area objectives and safeguards protected areas. The Bureau of Biodiversity and Protected Areas (SBAP) under the Ministry of Environment must provide a favorable report for concessions. This change affects potential concession mergers and relocations, adding uncertainty to economic development and investment in the country.

During the Chilean President's visit to China, Chile and China signed agreements, opening exports for Chilean chilled coho salmon to China. In 2022, AquaChile, the world's largest coho salmon producer, produced around 78 thousand tons. China imported 34.4 thousand tons of Chilean salmon in 2023, a 71% YoY increase, worth USD 251 million, an increase of 67% YoY. Chilean coho salmon production has increased recently, diversifying the export market. The low price is due to the supply-demand imbalance and the need for global market differentiation.

Norwegian seafood exports achieved remarkable success in the first half of 2023, reaching 1.31 million tons with an export value of USD 7.3 billion (NOK 82.3 billion), a record high. Salmon dominates Norwegian exports, accounting for over 70% of their total export revenue. Norwegian salmon performed well in the Chinese market, with exports of 20.8 thousand tons, a 67% YoY increase, and an export value of USD 259 million (NOK 2.91 billion), an increase of 95.3% YoY. This constituted 67.5% of all Norwegian seafood exports to China, marking a significant increase of NOK 12.3 billion compared to the same period in 2022, an 18% YoY increase.

Furthermore, the export volume of Norwegian fresh salmon HON (3 to 6 kilogram (kg) FCA Oslo) in W43 declined by 1.3 thousand metric tons (mt), marking a 5% drop week-on-week (WoW). Over the past five weeks, there has been a 3.5% decrease in the export volume, amounting to a reduction of 4,458 mt. The price in W41 dropped 1.36% WoW, reaching USD 7.49/kg. However, forecasts for the next six months suggest a rising trend, with prices expected to peak at USD 9.93/kg in Apr-24.

Lastly, Russia has seen a significant increase in its Pacific salmon catches in the 2023 fishing season, mainly pink salmon. By September 11, the yield of Pacific salmon surpassed 580 thousand mt, marking a 14% increase compared to the same period in 2021 and nearly 2.4 times the amount caught in 2022. Notably, the pink salmon harvest in Russia exceeded preseason forecasts by almost 100 thousand mt, contributing to a total Russian salmon harvest of over 550 thousand mt, the highest level since 2018.

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